Econ- 7.2 Formative Assessment- Option 1

Dealing with the rules of trade b/w nations

The goal is to help producers of goods/services, exporters and importers conduct their business

Attempts to settle disputes & reduce trade tensions

Help countries develop

Attempts to stimulate economic growth and employment

Lowering trade barriers

Accused of being lax on environmental protections

Seen as allowing richer countries to get what they want far more often than poorer countries

Helps industries access new markets

Increases the number of products available to consumers

A tax on foreign made goods and services

Shifts the entire supply curve of a foreign made good to the left

Most often used type of trade restrictions.

A numerical limit on foreign-made products

Causes the supply curve of a foreign-made good to eventurally go completely vertical

Forbids trade of 1, 2 or more more goods from a specific country

Harshest type of trade barrier

Most often put into place for political reasons.

Decreases Supply of foreign made goods

Increases the price in market for the impacted goods.

Typically causes the quality of the impacted goods to decrease.

Causes consumers to purchase more domestic-made good(s).